eggfaced's  Instablog

In response to the New York Times article which contrasts various tax systems around the world, I would argue the true cost of big government affects taxpayers well beyond the checks they write to Uncle Sam. 

The real cost of big government is not measured with tax rates but rather the stifling effects it has on businesses and entrepreneurs.  While true that successful entrepreneurs enjoy financial prosperity far greater than most of the population, their success is much more far reaching than just that of themselves.   It is also important not to undermine the tremendous risk taken by the entrepreneur when they initiate their venture.  Many businessmen often sacrifice a paycheck for years until they begin to turn a profit.  Their employees, however, receive a paycheck and can gain experience and better themselves in the future.  Businesses also have far reaching benefits to their communities through charitable work and the jobs they create.  By starving the businesses of much needed capital, big government not only hurts businesses but all its stakeholders. 

The true cost of government spending is measured in the amount of capital it diverts away from businesses.  Taking money from businesses and transferring it to someone else through welfare, entitlements, and other forms of spending may benefit one person but devastates an entire network of individuals connected to the business.

Jobs are not created by bureaucrats in Washington but rather private businesses started by entrepreneurs.  While business have been continually vilified through the recession I would argue that they are the only thing that can actually get us out of the recession. 

The time is now to shrink big government before it suffocates our entire economy.  Instead of the government looking for whom to increase taxes for they should focus on clearing the path for entrepreneurs.